The Super Hero Theme Park was started on January 1 of the current year by Dr. Strange. The following selected events and transactions occurred during January: 1-Jan Jack Strange, the owner, invested...

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The Super Hero Theme Park was started on January 1 of the current year by Dr. Strange. The following selected events and transactions occurred during January:



















































1-Jan



Jack Strange, the owner, invested $50,000 in the business.



5-Jan



Purchased equipment for $100,000 on account from The Gotham Company.



8-Jan



Incurred advertising expense of $1,800 on account from Mr. Freeze Agency.



11-Jan



Paid salaries to employees, $1,500



12-Jan



Paid the cell phone bill, $200.



13-Jan



Paid $1,500 for a 1-year insurance policy.



17-Jan



Jack Strange withdrew $600 cash for personal use.



20-Jan



Received $5,700 in cash for admission fees.



22-Jan



Billed corporate customers $3,000 for using the park earlier today.



25-Jan



Collected $2,500 from customers in advance of using the park.



30-Jan



Paid $700 on account for the advertising incurred back on January 8.








The following accounts are used in the Super Hero Theme Park:



  • Cash, Accounts Receivable

  • Prepaid Insurance

  • Equipment

  • Accounts Payable

  • Unearned Admission Revenue

  • Jack Strange, Capital

  • Jack Strange, Drawing

  • Admission Revenue

  • Advertising Expense

  • Salaries Expense

  • Telephone Expense


Complete the following:



  1. Journalize the January transactions.

  2. Post transactions to the General Ledger.

  3. Prepare a Trial Balance.

  4. Prepare an Income Statement.

  5. Prepare a Statement of Owner’s Equity.

  6. Prepare a Balance Sheet.

Answered Same DayOct 21, 2021

Answer To: The Super Hero Theme Park was started on January 1 of the current year by Dr. Strange. The following...

Kiran answered on Oct 22 2021
149 Votes
Part 1
    1. Journalize the January transactions
    The Super Hero Theme Park
    GENERAL JOURNAL
    Date    Account    Debit    Credit
    1-Jan    Cash    $50,000
         Jack Strange, Capital        $50,000
    5-Jan    Equipment    $100,000
         Accounts Payable        $100,000
    8-Jan    Advertising Expense    $1,800
         Accounts Payable        $1,800
    11-Jan    Salaries Expense    $1,500
         Cash        $1,500
    12-Jan    Telephone Expense    $200
         Cash        $200
    13-Jan    Prepaid Insurance    $1,500
         Cash        $1,500
    17-Jan    Jack Strange, Drawing    $600
         Cash        $600
    20-Jan    Cash    $5,700
         Admission Revenue        $5,700
    22-Jan    Accounts Receivable    $3,000
         Admission Revenue        $3,000
    25-Jan    Cash    $2,500
         Unearned Admission Revenue        $2,500
    30-Jan    Accounts Payable    $700
         Cash        $700
Part 2
    2. Post transactions to the General Ledger.
    GENERAL LEDGER
    Cash
    Date    Particulars    Debit    Credit    Balance
                    Debit    Credit
    1-Jan        $50,000        $50,000
    11-Jan            $1,500    $48,500
    12-Jan            $200    $48,300
    13-Jan            $1,500    $46,800
    17-Jan            $600    $46,200
    20-Jan        $5,700        $51,900
    25-Jan        $2,500        $54,400
    30-Jan            $700    $53,700
                    $53,700
    Accounts...
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